Beacon Equity announced that it is initiating coverage for ECOtality, and released a 20-page research report. The CFA who completed the report offers over 15 years of experience in equity research and investment marketing.
ECOtality develops clean energy solutions for the alternative energy industry. The Company is focusing on renewable energy technologies, which it plans to commercialize through acquisitions, partnerships and research and development. ECOtality has formed alliances with Fortune 500 companies and leading research and development institutions to deliver commercially-available clean power.
Its current research focus is designing and licensing a cost-efficient hydrogen-based electric power cell system called Hydrality for use in motor vehicles and industrial equipment. It is collaborating with JPL to design and test a full 65 kilowatt Hydrality system suitable for mass production and use in commuter buses, and hopefully by extension, all vehicles.
Hydrality could be the solution for making hydrogen a commercially viable fuel source. The portable system creates hydrogen using readily available magnesium and water. The entire process is non-toxic, non-comubstibe and environmentally-friendly.
The research firm closed the report stating, “Applying a 7.0 times Price/Sales multiple to our 2008 revenue estimate for ECOtality, we derive a target price of approximately $2.70, suggesting considerable appreciation potential from the current $0.54 price. As a result, we are initiating coverage of ECOtality shares with a Speculative Buy rating and a $2.70 target price.
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